Many cryptocurrency proponents envision a world without the traditional banking system. Not Craig Wright though. nChain’s Chief Scientist is of the opinion that bitcoin “doesn’t stop banking.”
Taking time off from issuing a host of legal notices to those who claim he is a “fraud,” Wright published a titled “bitcoin is not against banks.” Here, it should be noted that when Wright refers to bitcoin, he means bitcoin SV [BSV].
Wright began the post with a comparison,
“The fact of the matter is: there is little difference between bitcoin held with Coinbase and the modern banking system.”
The goal behind an “invincible bank” is to create a system via the “bitcoin blockchain” that runs on a “single ledger,” preventing any malfeasance by banks, governments or corporations. Wright’s vision will do away with “full private keys” and curate a “partial seed system,” preventing funds transfer during a hack due to an insufficiency of “seed parts.”
Unlike bank accounts to store funds, the bitcoin project will be based on e-wallets which outrank its traditional counterparts on the “usability” and “code efficiency” front, according to Wright.
He continued by stating that the banking system uses “obscurity of information and hide” to keep a check on the security of funds. Such a system also focuses on the core structure of the operations, and not on mere “assurances”.
The post continued,
“Every fee is calculated dynamically per transaction with the specific instance’s variables and bit-count so that every fee is exact, instead of relying on categories and tiers for fees.”
Additional fees will also be introduced on a volunteer “tip” basis, to allow for faster transactions. BSV’s big brothers, bitcoin [BTC] and bitcoin Cash [BCH], have already disapproved of any charging any over-and-above fees.
User authentication is also pegged as an important factor, with one key finding. The post stated that “every transaction needs to be signed by the user.” However, it goes on to state that the “signature” will be divided between the operator and the user.
Revealing the dilution of decentralized control, the post read,
“Just like credit or debit cards, every transaction needs to be signed by the user. The signature we have a part of, and the user has the other part. Together, the funds are accessed. Separately, they’re useless mnemonic seeds.”
The post concluded by exalting the future of a “regulated economy,” where regulators “compete” and will be held “accountable”.
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Published at Tue, 16 Apr 2019 08:12:55 +0000
